Jon Morrish, President of Cement Europe – formerly known as CEMBUREAU – has delivered a stark warning that the European Union’s regulatory and policy framework is putting the cement sector’s net zero decarbonisation ambitions at serious risk at the launch of the organisation's Cement Action Plan.

Speaking in Brussels, Mr Morrish said the European cement industry had already mapped a clear route to net zero in its 2050 Roadmap and now through the Cement Action Plan, detailing how the industry intends to reduce emissions by 78 per cent by 2040, and even become carbon negative by 2050.

However, he warned that success was “conditional on the right regulatory framework, its financing, and CO2 infrastructure.”

“We have a firm belief that the industry’s progress is not matched by a compelling regulatory framework, yet. We have real competitiveness challenges – energy prices remain 65 per cent above pre-crisis levels and are significantly higher than in the EU’s neighbouring countries that represent our toughest competitors. Carbon costs, regulatory inconsistency and reporting burdens further contribute to a seriously unlevel playing field. The result is that imports have quadrupled since 2016, exports have halved, removing jobs and reducing investment.”

Mr Morrish warned that the sector’s ambition and capability were being undermined by a system that isn’t working for industry.

He conceded that finance through the EU’s various mechanisms, including the EU Innovation Fund, have benefited the cement industry, but warned that “still do not match the transitional financing needs that we have in the industry”.

“It is noticeable and telling, he added, “that the only two carbon capture projects to reach financial investment decisions are outside the EU 27, in Norway and the UK.

To remedy this, Mr Morrish called for the return of 75 per cent of ETS cement revenues to the cement industry to focus on deep decarbonisation projects. “This can deliver decarbonisation at real scale.”

Mr Morrish outlined three urgent policy measures required to safeguard competitiveness of the cement industry in Europe and maintain momentum towards net zero.

First, he argued, was to deliver an effective Carbon Border Adjustment Mechanism (CBAM) without delay, to ensure fair competition for both imports and exports. Most importantly it must be operational in 10 weeks time to meet the 1 January 2026 deadline.

The second priority for the industry is access to affordable electricity and energy, essential for industrial viability.

Third is business planning certainty under the ETS framework, giving companies clarity to make long-term investment decisions, especially in this industry which has investment cycles of 30-40 years. “We still don’t know the ETS benchmark value for 2026 and we don’t know the framework after 2030,” he said.

Addressing concerns over CBAM, Morrish warned that critical questions remain unresolved regarding the verification of emissions data from exporting countries. Verification and auditing of imported products’ carbon footprints are still unclear, he explained. “In short, customs need to do their jobs.”

His message was direct and sobering: “We are worried – I’m nervous. If it’s not working in a year’s time, and it’s a leaking sieve, we have a big problem. It’s a real business risk. We have already been held under the water line for 10 years.”

The Cement Action Plan sets out how Europe’s cement industry can turn the vision of the Clean Industrial Deal into reality – but, as Morrish cautioned, only if policymakers deliver the right conditions for it to succeed.

Key Measures
The Cement Action Plan  identifies five key levers for decarbonisation:

  • Scaling up carbon capture, utilisation and storage (CCUS) across more than 100 cement kilns by 2040.
  • Expanding alternative fuel use to replace up to 95 per cent of fossil fuels by mid-century.
  • Increasing clinker substitution through the use of supplementary cementitious materials (SCMs) such as fly ash, calcined clays, and slag.
  • Accelerating circular construction by promoting concrete recycling and secondary raw materials.
  • Electrifying processes and adopting renewable energy, supported by grid access and competitive electricity prices.

Cement Europe estimates that the transition will require EUR50–60bn in investment across the value chain, including new CCUS infrastructure and transport networks. It calls for dedicated EU funding mechanisms, streamlined permitting, and binding CO2 storage targets to ensure the infrastructure is ready by the mid-2030s.

The plan also proposes green public procurement rules, a CO2 product labelling system, and a just transition framework to ensure workers and regions benefit from industrial decarbonisation.